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Sunday, August 31, 2014

Serbia to create state airport operator

Serbia to set up single company to manage all of its airports

The Serbian government has announced plans to set up a state-run company to manage up to 25 of its airports, including the country’s busiest - Belgrade. The public company running Belgrade Airport will be renamed to “Airports of Serbia” with more than twenty smaller airports to be added to its managing portfolio. The move is believed to be in relation to the upcoming concession or sale of Serbia’s busiest airport, through which the future operator will also gain control to the rest of the country’s airport infrastructure. The Serbian Minister for Construction, Transport and Infrastructure, Zorana Mihajlović, says the company will be set up within days. “Six airports are currently confirmed to be part of the company including those in Niš, Kraljevo and Užice. We are not setting up a stand-alone enterprise, rather, these airports will be added to the “Aerodrom Beograd” company which manages Belgrade Airport”, Ms. Mihajlović said.

With exception to Belgrade, other airports in Serbia have no scheduled flights. Niš Constantine the Great Airport, in the country’s south-east, is expected to see low cost services from next summer season with an agreement to be signed with a budget carrier next month. Meanwhile, Kraljevo’s Morava Airport, in central Serbia, which has a brand new passenger terminal, is yet to be utilised for commercial use with further work needed on lengthening the runway and taxiways. The potential new operator of Belgrade Airport, which the government hope to offload from state funding in the coming future, will also have access to a majority of the country’s airports, which could add to its value.

The Serbian government yesterday confirmed that more than ten companies have expressed interest to take part in the concession of Belgrade Airport, including Germany’s Fraport, which is in the final stages of acquiring a 75.5% stake in Ljubljana Airport. However, the government admits it still hasn’t decided which model it will use for the airport’s privatisation and future expansion. Earlier this week the Serbian Prime Minister said, “Soon we will see how and in which way we will expand Belgrade Airport and build a new runway, whether it will be through concessions or whether a different approach will be used”.

At what point have I said '25 of them have control towers'? Why do you have a problem accepting that Serbia has at least 25 functioning airports? Who cares if they have grass runway and serve for agricultural and sport purpose, they still have the status of an airport, and that's how it is whether you like it or not...

The idea is good but what's all this TYPICAL Balkan mania of having more airports? Take a country like Spain that had spent so much money on airports and if you ever visit the country, you will see lots of ghostly-town airports. Does Serbia really in need of so many airports?

In my humble opinion, the idea of developing air traffic with as little planes as from 15 to 30 seats is mission implausible. The tickets would be much more expensive than with big enough planes. The minimum seat standard for the airliners is now 50 seat configuration (eg ATR42 -600). In addition, the airport for the civilian air traffic has to fulfil a lot of regulations so it requires a lot of money which couldn't be made using these pretty small aircraft mentioned. In Serbia, it's realistic to have two international airports: Belgrade and Niš. In addition, there are and more and more freeways available so no one would make its choice on flying if it comes to the distance of up to 150km by road. Regards, P BL.

Hi Anonymous August 31, 2014 at 9:25 PM, if the minimum seat standard's 70 seats then ATR wouldn't make ATR42-600 at all but ATR72-600 only. Neither of these two are much profitable but, as not being gas guzzlers, they are both good enough for short distance traffic and very suitable for traffic amongst all the airports in the former Yu since the people are rather poor than rich and do not much use the most expensive way of travelling if it's all about short distances . Of course, the ATR72 is a bit more profitable than ATR42 but if usually there are not more than 40 passengers on some routes, why have the 72 and not 42? P BL

Could this move be to ensure that Abu Dhabi investors (or whoever ends up taking over BEG) is not undercut by a competitor purchasing - or being given for free - an alternative Belgrade/Serbian airport or airfield? If Abu Dhabi invests 500 million Euros at BEG and wants to double or triple airport fees to get a decent ROI then a potential takeover by a competitor at Užice with significantly lower airport fees could canabalise BEG market share. I can assure you, no investor is prepared to invest in or manage 10+ airports for less than 5m ppa. But if you control ALL airports belonging to a market then you eliminate all competition and a monopoly position for the next 20-30 years equals a lot of $$$$$.

It could also enforce investments on other airports too. A good example is TAV having both SKP and OHD. Whats the point of having a bunch of airports with no traffic while BEG continues to grow? Running an airport costs money.

Personally, this 'Airports of Serbia' is the worst thing I have heard. It shows the lack of visions the government has on our infrastructure.

Why should the Arabs double or triple airport fees?I mean this would turn off airlines en masse.But an airport lives from as much airlines as possible.

Have you seen what airlines fly to Dubai,Abu Dhabi or Sharjah?Although these are home bases of Emirates and Etihad there is so much competition.To follow our logic there should be all other airlines forbidden...But it is the opposite.

Other countries are breaking up monopolies (see what happened to LHR owner that had to sell other airports in UK) , but Serbia is creating monopolies. This will just enforce Belgrade bias, particularly if Arabs get it, as it seems most likely. my2cents

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LIVERY OF THE WEEK

Jetstar special

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Australian low cost carrier Jetstar has unveiled a special livery on one of its Airbus A320s to promote the first country-specific version of the board game Scrabble. Manufacturer Mattel has included a list of local slang in its official glossary that are also featured on the jet, including words such as "Bonza", "Mollydooker" and "Devo". The A320 also includes the airline's name spelled out with Scrabble tiles. The jet is being used on both domestic and international routes and features Scrabble branding inside the cabin as well

GLOBAL AVIATION NEWS

Lufthansa, easyJet favourites for Air Berlin

Lufthansa Group and UK-based easyJet have been selected as preferred bidders for the main assets of the insolvent Air Berlin, the German carrier has confirmed. Lufthansa also submitted a bid for Air Berlin's Austria-based subsidiary Niki, which could be integrated into its LCC arm Eurowings. Air Berlin administrator Lucas Flother had planned to keep these decisions confidential until September 25, after Germany’s general elections. Air Berlin said in a statement that the creditors’ committee will continue talks with the two carriers until October 12 with the aim of selling Air Berlin's air transport assets. Talks with bidders interested in other assets will continue in parallel. Lufthansa Group CEO Carsten Spohr said at a media event in Frankfurt that Lufthansa’s bid for Air Berlin's assets is focused on securing the 38 Airbus A319/320s it wet leases from Air Berlin. The Star Alliance member is also interested in a further 20 to 40 aircraft, without creating antitrust concerns. Those 38 wet-leased aircraft carry about 1.000 passengers a day, mainly for LCC Eurowings, and Lufthansa’s priority is to keep that operation stable. Lufthansa would need around 3.000 new employees as it seeks to build market share following the exit of Air Berlin, which has 8.000 employees. However, Lufthansa is not interested in Air Berlin's long-haul routes because it said Eurowings can grow this segment on its own. Air Berlin will end long-haul operations September 25.
Source: ATW